Digital trends in logistics post covid keep reshaping our industry. The pandemic has disrupted the Supply Chain, changing customer expectations and causing a global economic recession. These disruptions will keep accelerating digital transformation in the Supply Chain and Logistics within the next 5 to 10 years. Thus, we’ve put together a list of the 7 most relevant digital trends in logistics post-Covid we should be watching.
7 Digital Trends in Logistics Post Covid
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Logistics as a Service. The growing costs of logistics operations are increasingly pushing companies to outsource them to service providers. And Gartner’s research supports this trend. Indeed, “over 80% professionals indicate that they plan to significantly increase logistics outsourcing budgets beyond warehousing and fulfillment in 2020.”
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eCommerce Growth. We’ve talked about this trend in previous posts, as a logical result of the Covid pandemic. By now it’s a fact that ecommerce has grown in 2020 and 2021 to levels expected by 2022 through 2024. Thus, it’s becoming more and more competitive, and calling for digital solutions to meet and exceed customer’s expectations. Sure enough, we’re already seeing accelerated adoption of automation robots for fulfillment, as well as drones for last mile delivery. And it seems like these trends are only starting to unfold.
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Blockchain-enabled digital ecosystems. Simply explained, blockchain technology is a decentralized computer network for instantly sharing information, in a secure mode. Now imagine the possibilities in applying blockchain technology to the supply chain and logistics. “Blockchain provides transparency, auditability, tracking and peer-to-peer data interoperability to solve many of the traditional problems in the logistics supply chain, including tracking, fraud detection, contract management and cash management”. Mike Walker, Microsoft via Forbes.
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Visibility technology. In the post Covid world, customers are looking for end-to-end real time visibility and transparency more than ever. In fact, according to Gartner by 2023, 50% of global product-centric enterprises will have invested in real-time transportation visibility platforms.
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Sustainability. Soon, digital ecosystems will be able to provide data for setting environmentally efficient targets for companies and their supplier network. This is just what will be required to meet customers’ expectations about sustainability packaging and delivery standards.
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Digital Ecosystems for leveraging customer relationships. According to Microsoft’s Mike Walker, “digital ecosystems could become one of the prominent business models for companies around the globe”. Mr. Walker advises organizations to make the most of consumer data, to create more humanistic relationships, from the customer’s perspective.
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AI and Robotics Driving Logistics. From automation and robotics to move goods within warehouses, to the use of drones for delivery and even self-driving trucks. Gartner predicts that by 2023, demand for G2P (Good-to-person robotics) systems will quadruple.
Supply chain and logistics companies face the challenge of adopting these digital trends. And the sooner we embrace supply chain digital transformation, the more we’ll turn it into a competitive advantage. Otherwise, it will be too late, and it will have become a cost of entry, no longer a differentiator.
Yes, the future is here already, and what an exciting time to be in logistics! At Estafeta USA we look forward to working with our clients in adopting these trends as we help meet their objectives! Any questions? Please feel free to contact us and let us get working on your logistics to Mexico!
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